China Customs: Keep CNY Stable; Says US Export Plan A Threat

(MarketNews.com)

The Chinese customs administration warned Friday that the Obama Administration’s plans to double U.S. exports will threaten China’s global market share, while recommending that government maintain a stable yuan exchange rate.

The General Administration of Customs’ rare foray into the issue of rising global trade tensions marks the first time a Chinese government agency has expressed concerns over the White House’s export plan.

“The U.S. recently set a target to revitalize itself as a major exporter, doubling its exports in five years ... other major economies also intend to boost their domestic economies by expanding exports,” it said in a statement on its website.

“Our country faces tougher competition to maintain our world market share,” it warned.

“We will actively face international trade protectionism and we should maintain a stable yuan exchange rate,” the Chinese Customs Administration said in its statement.

“In the post-crisis period, the savings ratio of major developed countries will increase and consumer demand will decrease. In addition, increasingly sharp trade protectionism and disputes over the yuan exchange rate mean the time of our country’s fast export growth is over,” the agency said.

It predicted that China will find itself competing more vigorously against emerging markets in low-end goods but also with developed countries and their higher value-added exports. Read more here.